Story: Tesla investors are restless.
Almost two weeks ago, Reuters exclusively reported that the company had scrapped plans for a low-cost electric vehicle.
Tesla denied the report, and CEO Elon Musk wrote on his social media platform X, “Reuters is lying” (quote).
But since then, he has left shareholders in the lurch without providing any concrete updates on the status of the Model 2 EV, which starts at $25,000.
Now, some are looking for clarity not just about cars, but also about Mr. Musk's plans to deal with falling sales amid weaker global demand and increased competition from cheaper Chinese EVs.
In addition, Tesla announced this week that it would lay off 10% of its global workforce.
That's why Musk's silence on the Model 2 is all the more “heartbreaking,” one analyst said, calling the car a “tool” for the company's growth.
One asset manager and Tesla shareholder was even more blunt, telling Reuters (quoted): “If Tesla doesn't release this car, there's no point in even investing in Tesla.”
On the same day as the Reuters report, Musk further muddied the picture, posting another comment saying the company's self-driving robotaxis would be unveiled on August 8, without providing any other details. Ta.
This leaves many investors in the dark about what vehicles Tesla plans to build next and, importantly, on what schedule.
Musk and Tesla did not respond to requests for comment.
Tesla remains the world's most valuable automaker, but its stock price has fallen 45% since its recent peak in July.
